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BOOK YOUR FREE STRATEGY SESSION NOW >>This week we saw negative five-day returns in several markets. Leading the way is the price of Crude Oil, which is down more than 10%, followed by its derivatives, Heating Oil and Gasoline.
Equity indexes are also down, with losses of more than three percentage points for both the Nasdaq and the S&P500. However, despite the downward movements, the volatility of all stock indexes is at historic lows in both the short and long term.
To learn more about how the markets are moving and the volatility trend, don't miss our weekly overview!
Enjoy the video!
Hey everyone, welcome back! One of the coaches at Unger Academy here, and today we’re going to be talking about what interesting events have happened in the markets this past week.
Okay, so let’s start as usual with the equity indexes. In this chart, we see the performance of the Nasdaq, which is quite negative. It’s currently losing -3.45%. The SP 500 is also performing badly, at -3%.
A little better, as it has been for some time, the European stock markets. The Eurostoxx has lost -1.25%, the DAX has lost -1.43%, so the European stock markets continue to perform better that the American ones.
In the bond market, on the other hand, we have the T-Bond that continued to rise this week, although not very much. The Bund also went up, while the U.S.10-year bond is slightly behind.
On the other hand, things are looking very bad in the energy market for Crude Oil, which is currently losing more than -10%. We are at -10.22% at this moment.
And the same thanks applies to the derivatives, so both Heating Oil and RB.
In contrast, Natural Gas remains essentially unchanged. However, we know that it was already down significantly the previous week.
Metals offer no particular food for thought. Silver is performing well, at +1%, Platinum is -1.5%. Anyway, overall I mean this is a pretty stable market.
As for Meats, Lean Hogs is suffering a bit and has lost -5%. The other movements in this market are pretty marginal.
So, let's go ahead and talk about the soft commodities market, Orange juice +8.57, and we see that this market managed to break all of the all-time highs and is currently at new highs with a remarkable upward acceleration.
Turning to the Grains market, we have git SoyBean Meal up +11%. I mean, look at that remarkable, bullish acceleration.
It’s also interesting that another soybean derivative, namely Bean Oil, is at -7%.
There are no other relevant movements in this sector. Wheat is trading at -2%.
So, I’d say that we can move on to currencies. We can see that the Euro-Dollar is at 1.0540 this week, not too far from the previous week's values. We have the Yen that is losing against the US Dollar and not much else.
The cryptocurrency market also didn’t do anything particularly interesting. Bitcoin, which continues to sail around the 17,000 level, remains essentially unchanged.
So let's move on and have a look at the volatility of stock indexes, measured as standard deviation. I'd like to point out that the volatility of all indexes is at a record low, despite a week that wasn’t particularly positive, both in the short and the long term.
However, if we look at the volatility term structure of implied volatility, we see a slight increase in volatility, especially in short maturities. The structure is still in contango, which is the traditional volatility term structure for bullish markets or, better said, for when there’s no market disruption.
The VIX is at very low levels compared to the range of values it touched in the last six months, so there doesn’t seem to be any particular concern among traders at the moment.
Let's now look at the rollover calendar schedule for next week.
We have the rollover for the VIX futures on December 14. And the same day is also the proposed date for the rollover of the European stock indexes, the DAX and the EuroStoxx50. And finally, on December 15, we'll to rollover Crude Oil.
Well, guys, before we leave you, I’d like to make one more suggestion. If you’re interested in systematic trading, please go and check out the link in the description of this video.
Through this link, you can go and join a free presentation by Andrea Unger, who will introduce you to his trading method, the "Unger Method," with which he won the World Cup Trading Championships four times.
You can also get the best seller "The Unger Method," covering only the shipping costs, or sign up for a free strategy consultation with a member of our team.
And that is it for today.
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Have a fabulous weekend and we will see you soon in our next video! Bye bye for now!
We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.
BOOK YOUR FREE STRATEGY SESSION NOW >>Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.
I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems.
In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.
Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.
Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.
